क्या Job के साथ Stock Trading Possible है? जानें एक Part Time Trader से।
Hello, Greetings! I am your friend Vivek Bajaj, Co-founder of StockEdge and elearnmarkets. Friends, one more face 2 face and another interesting conversation. Few days back I tweeted, that if you are a part time trader and you are trading in derivatives There are very less chances that you will make money People who are involved full time in market are only successful Not necessary that my every statement will be 100% true.
But I gave a judgment according to my experience. Some people liked it but some people did not. The speaker who is coming today talked to me and said Sir, I am a part-time trader with derivatives and I am successful in the market. So, the statement you have given might not be applicable to me. But, he was so kind that he did not refute it and only said that it is not applicable to him And I liked this a lot because it is not easy to be a part-time trader and earning money in derivative You can still earn in the cash market because you have the liberty to buy more if the market is down and you can't see the mark to market loss But in the derivative, you are able to see the mark to market loss on a daily basis So your brain stops working But, it was nice talking to him and I felt that a face 2 face video should be recorded So, today my face 2 face guest will be anonymous. The real name will not be disclosed. He will not be on the camera as well because he is doing part-time trading in a big firm In a big level and a big position, so he does not want to identify his name But, he is ready to talk to us. And I am very happy about that.
So, I will like to welcome twitter handle Gordon Hi, hi Vivek! Hi, Good Afternoon So some people want to keep their identity low profile. And I have recorded with one of them, so thank you so much for accepting this invitation and discussing things with me. Thank you Vivek, really glad that you gave me this opportunity to share my thoughts with the trading community. Nobody is an expert in this field but everyone has different experiences. So our job is to share our experiences If people can benefit out of it then wonderful Absolutely. So I will continue using the word Gordon for you. Although, Gordon gives a different image.
Probably even you wish to reach that level, which Gordon reaches in the movie But let's see where do you reach. I know you are not comfortable sharing things about yourself, your company, and what you do. But tell us a little bit about you, so that our viewers can get comfortable that you are working somewhere and you are a part time trader. Sure sure At this point I can share my screen, so that I can take you to Can you see my screen? yes, so this was my heartfelt wish to take Mr. Gordon's interview. So finally I got the chance. It was my wish too, to be a part of your interviews, Vivek. I have seen all videos of face 2 face almost. Might not have missed any.
That was also my wish at some time to be a part of it. Today has been that day. So, I will definitely start with my introduction The main message I would like to give the traders today who are doing part-time and not full-time traders. Never think if you are a part-time trader you can't make money or have the capacity. As opposed to those who are trading full time. It's nothing like that. That is my message. So, I was born and brought up in Mumbai. Of course you are in Mumbai you can't stay away from the stock market.
My dad himself was not a trader but was an avid investor. So he was my source of inspiration and attraction to the world of stock market. Since childhood, I used to see annual reports, from Indian hotels and Infosys.
All this made me curious and I used to reach my father who was kind enough to tell me. This increased my interest. Then I completed my education and started working. I started learning on my own. Then slowly I got introduced to FNO and future options, so that was my journey. By Qualification I am a CA and a Bcom. Also completed my CS.
Currently, I am working in Bangalore in an MNC in a senior position. Now in Bangalore for the last 7-8 years. So Bangalore has now become my second home.
That's a little bit about me on the personal front. I as a trader is working for the past 6-7 years. Almost. Took about 3 years to become profitable. As a learning curve, I was loss-making. I was able to make money initially but after tallying my book in the year-end, I used to find loss. In the beginning, I had losses. But in the last 2-3 years I was able to make profit.
2020 was one of the good years for me and hopefully, 2021 is also turning out to be good so far. Well, whole year is left so we will see. So, currently, in my trading, I am trading in two systems. One is a system where I am selecting stocks in the cash market on delivery with the intention to sell them. Not as buyers, but using certain technical criteria by buying and trading them.
The other system is the NIFTY future trend following system. So these are the two systems I am trading. At the beginning of the year or maybe at the lag end of the last year. I went through a mentorship course from Creek Mandral who is a Mumbai based mentor. It is his taught systems, which I am trading today.
In fact, these are the only 2 systems I am trading in the calendar year 2020, so far. To my twitter handle, you know, as you have rightly guessed. I must have watched this movie Wall street. At least 40-45-50 times if not more. And I was thoroughly impressed with this character Gordon Gekko who is you know. So when I thought I want to come anonymously on twitter, I wanted to take this name.
So I never thought much, it's just one of my aspirations or inspiration you can say so. That was my introduction. So I will take a pause here maybe or you want me to continue? No, no. You can continue. I am here only. so, maybe I will keep both hindi and english. So that both are audience can.
You can stay comfortable in anything you want because we give english transcript below. You can speak in anything you want. Hindi probably will be preferable. Preferable, okay. So I will talk more in Hindi. Okay. Absolutely. So today's topic is can part-time traders make money. Can part-time traders be successful in the market?
I personally believe, absolutely yes. There is no question in my mind that part time traders can definitely be successful. I totally believe that and I am going to tell you why I believe that. Because there is a common notion in the trading community that if I have a full-time job I don't have the time to look at the screen The point I want to make is that screen time has no connection with money-making. First of all, I think traders should take that misconception out of their minds. Screen time has no connection with making money. On the contrary, I would say more screen time is harmful to your trading.
The more you do trading, the more you look into the screen, more you will have the urge to take new trades. I, personally believe that it is not the quantity of time you spend on the screen. But the quality of time that you spend is more important. I even tweeted that the real trading begins around 7:30-8 when the market is closed down Because of preparation for the next day, and I know that the 2 trading strategies I am using those are such that they do not require me any screen time Except for the orders that we need to put for stop losses We need 5-10 minutes but other than that there are no requirements.
So I feel the quantity of time is not important at all, it is the quality of time. And one advice I would like to give the part-time traders is that it is very fashionable today to sell options to do intraday trading I know that's the glamorous part of trading. Many of our friends and colleagues do that. I am not judging anyone or their style. I believe that do anything but make money. So if someone is doing well in intraday, then more power to them and all the best.
But just because they are doing well, it doesn't mean that even you will. The point is that if you are doing a full-time job, do you have the time to look at a 5 or a 10-minute candle? The point is that if you don't have time then you can't be successful in that field. You can't be successful in a particular type of trading, but it doesn't mean that you can't be successful in trading. You can be successful in trading, but you have might step back a little bit. And instead of looking at intraday trading or options selling with an intraday mindset. Look at positional trading and slim trading Take the longer candle, take weekly candles, daily candles. Trade in daily candle, I do the same.
because that's the best time to trade I don't need to look at the screen almost for the whole day. So I trade from the daily candle, and it works and you can focus on the larger time frame. Make bigger trade and ignore a lot of noise that happens in between the day.
I, personally feel part-time traders should make note of positional trading if they want to make money. Many people ask me that I do positional trading so do I have that quantity. My quantity is 3000-250 in NIFTY future, so how do you hold even something happens overnight? If some news comes up. There was a nice saying by one gentleman, I don't remember his name currently. More money has been lost anticipating a black swan than in the black swan itself.
We get so scared thinking that something will happen, we don't trade only. The point is that whatever is going to happen will happen. But you need to trade. That is where your risk management comes into the picture For example, when I trade a quantity of 3225 future and I hold it overnight That quantity is decided as such because even if it fails it will not end my trading career, it can cause a dent in my trading PNL for the short term. That is very important according to me. So very quickly I will give pointers about the advantages of part time trading according to me. Everyone thinks that part-time traders have disadvantages only.
But it is not like that, it has a bright side to this and a silver lining. People who are part time trading should focus on these things and not that they have less screen time. Just look at the advantages. You have 2 incomes. You have your salary and the trading income. The best thing that can happen to the trader is the salary income, I would say Because the moment you have your salary income, you know that your house does not need trading money To get that liberating feeling is very difficult. In my case, I know I have my salary and I know I can sustain my family from the salary income. So I don't have the compulsion I don't need to worry about fees, groceries and other household issues. So I don't need to earn every day.
You have to worry if you are doing that with your trading income and that's a reality. You have to ensure have to make sure that it is paying your daily bills. Fortunately, we part-time traders do not need to worry about that.
We have the luxury to not have the compulsion to earn money every day or every week. So that is a good thing Another thing that I like that when you have a job When you are interacting with people outside of your trading world Your life is not revolving around trading And the whole day you think about trading because you are around it But there is a life outside trading In fact, when I am the busiest in my office, I also had the best trading days that day. Because I am not looking at the screen all the time and thinking that nifty has bogged down or about the stop loss I am not bothered and I am busy with my work. I let my systems take care of it. And when I let my systems take care of it automatically I am disciplined. Because I don't have the time to be indiscipline These are some advantages the part-time trader should inculcate on and capitalize on. I personally feel.
With that, I will also go on to the topic of a successful trading career as a part time You need to focus on 3 things, which is applicable for every trader not only part time But particularly part-time trader because we don't have much screen time If we don't have so much screen time then what do we do So what I do is, because I don't have the ability to watch the screen or constantly be in front of the screen I have delegated my trading to my systems So I am not a discretionary trader, which I won't be able to do because I am a full-time worker Because I am a system trader, I rely on certain strategies Which are mechanical, technical strategies, which is pure system driven strategies As I said earlier, I am trading in 2 systems. One is cash market and one is NIFTY future Both the systems I am doing are purely systems-driven. There are precise entry and exit rules and those strategies have been backtested. As I have mentioned earlier we learned this in Creek Mandal's mentorship. To give credit, this backtesting was not done by me. It was done by him. But yes I have adopted those strategies. The back testings are very robust. I can vouch for this.
Based on those back testings, I can say it is very robust and it has a high positive expectancy Now in this point, I want to say something Many people say that you cannot predict the future with backtesting. And it is useless. Because of what happened 10 years back or before, it is not necessary that it will happen again. So I want to remove one misconception The purpose of backtesting is not to predict the future at all. This is absolutely not the purpose. In fact, nobody can predict the future.
Backtesting is actually not to get certainties of future but for the uncertainties that lie in the future If you are able to understand what can go wrong in the market If you have only that knowledge, then half your job is done as a trader Because you get into any business and trading is absolutely a business If you get into any business your job is to know what are the various pitfalls in the business What are the things that could hurt me If you at least know half of them because knowing everything is like predicting future Even if you know half of the things because in backtesting you come to know you can have 7-8 consecutive loses You will come to know that you can have 20-25% drawdown You can also know about winning and losing trading and its earning and losses. All those parameters you get to know I, personally feel that backtesting is a very good tool not to predict the future but to get to know. And the major advantage of backtesting in my view is Once you come to know your system in and out, and how much it is in water Your conviction level increases because when you are taking the trade When you are taking the next trade, you come to know that over the long run you are definitely going to make money Your conviction in the system increases and that brings me to the 2nd point, which is discipline If you don't have conviction in your trading system, then there is absolutely no way you can be disciplined You can never work on a system that you don't trust You have to follow the system every day, every minute without hesitating and thinking. And last of course is the money management and risk management part Only having a robust strategy will not work, you also need to be disciplined Now only discipline will not work because you also have to do money management. If you have invested 10-15% capital in one trade then your ruin is very very near Or very very prominent The point is that how to do risk and money management should also be a part of your plan According to me, every part-time trader has to develop a trading plan It is said that everything runs on a constitution, even our country runs on a constitution we have a constitution that lays down the law everyone has to follow that constitution And that's how a society works in a systematic way So if there is no constitution and law then everything will be in a mess and anarchy So think of trading as a business, just like a company.
Even a company has a memorandum of understanding, and an MOU, articles of association. Why is that? To tell that this is the company and it will work like this this much capital will be invested and which business it will go to and not go So that is how a company is formed, so why is trading any different Trading is a business and for that, you need to have a precise plan Which strategy you will do? when will you enter? when will you exit? The amount of money in every trade and all that The trading plan has three prominent elements One is a robust strategy that has been backtested. second, we will give you the disciple to follow that strategy Thirdly, the money management and position pricing so that the discipline and strategy is used for work Those are the three prominent things I have a lot of advice for the new traders, but first I will show what I am doing live and what I am doing in trading I will try to integrate my principles and advice into how I am actually been trading in real life So everyone knows that I use this twitter handle gordon gekku and if you see it every day I am updating my daily PNL. So what I am doing is because this is just an experiment I am doing because Basically my idea behind publishing this is to give an idea to people that one can definitely trade and make money more importantly what learning they can take from my experiences So I am publishing my update daily and as part of that update what I am doing is I have opened it already I am publishing my trade loss, so what happened is that in calender year 2020 this experiment From this year I started trading from 21st of January and before I took a new year break So from that day onwards, I started publishing my daily trades As I said I am running two strategies one is the cash market strategy, which is from columns A to F I have mentioned all the trades taken from 1st February The second strategy I am doing is NIFTY future trade strategy, which is columns P to U So this is a running strategy and then there is a third strategy, which I have stopped now, not active anymore The point I am making is that in both the strategies, whether it is cash market or NIFTY future I am going exactly by a certain system that I have and basis of that system we are taking the trade Now you will ask what am I getting to learn Let me come to the cash market So 3-4 things I will say, so I will alternate between my trading laws and the points I want to make Just a small reminder, you might not share your exact strategy because that is not what expect from you But the process of mindset and what people should follow Because everyone has their own strategy and finally people should build their own strategy That I believe in So do not tell us the whole strategy, but your process and mindset Absolutely Vivek ji That is exactly my plan First of all, I want to give a message to all the traders As you rightly said..everyone.. I have been absolutely as guilty as anyone else in doing this
In 4 of the 6 years, my time was spent in finding the correct strategy that will make money That holy grail First of all, there is no such holy grail, no such indicator or strategy There are only some strategy that works sometime Some strategies that work other time So first we need to think that their is no strategy that is a holy grail That is absolutely something that you need to take out from your mind so what I am doing is...let's come to the cash market strategy So we have a strategy where we select stocks delivery based buying, and with the intention of selling them later on so when.. this strategy that we made The broad concept is that you have to focus on the strongest stocks in the industry or strongest stocks in our market Generally what happens is that retail traders have a mindset that stock has already increased by 150% or 200%, so what is the use of buying it The stock is already at an all time high, so what's the benefit It is not like that we have to see if the stock is at an all-time high or in the 52 week high or if it was in 200% in the past 1 year so what is the logic behind it in the sense how it worked because the market knows better than what we individual traders know as traders we do not have the luxury to.. even technical traders.. can deep dive into annual reports and the fundamental analysis or the economical research behind it I personally believe that price as the single most important factor is good enough for me for all my trading decisions and making good money from the market I believe it is the ultimate indicator or if someone wants the holy grail then the price is the holy grail Just rely on price and nothing else Basically our funda is to buy stocks that are strong and we have a certain filter and criteria to decide which is the strongest stocks ones which performed the best in that price in the recent times we select those stocks and ones we select..we have certain levels if the stock is identified as a strong stock then it doesn't mean you should jump on it we wait for it and let the stock come to a certain level which is again identified by a system and ones that stock crosses or stops above that level then we enter into that trade so our system is so objective and mechanical that what stock has to be bought in how much quantity and in which price in which price is the stop loss, everything is determined let's take an example, the Dhani one here in front, I think you have corrupted the portion size because it is not yellow Exactly exactly So what happened here, for example, Dhani came to our watchlist as a strong stock Then we started tracking it everyday..you know..
and we have an end of the day system so we track it every day and once we track every day at a certain point in time, we are leveled, the buying level this stock was going to close at the above level so that is the point we decided to enter into this point so let me highlight what all I am talking about so first of all, whichever stock has come in our watchlist, dhani then we track it daily and we realized that it will close above our buying level so our entry price was decided and in this price, we have to enter so this entry is done on the same day closing or the next day some people prefer to do it the next day me, personally prefer to do it on the same day evening 3:25 pm I look at the expected close, and if I think it is going to be above the expected price then I buy it that very day so that is my philosophy but there is no right or wrong about it, both are okay sometimes we also have an advantage, next day the market stop opens gap down you could have got it at a better price but the type of stocks we select, the strongest stocks might open a gap up so I prefer to buy it that very day because I would get an entry at a better price that's my logic one question, you took out 358 in Dhani Now suppose in 3:28 pm it is closing above 358 so you will take it, which is fair as per your model now people who are taking it the next day, and the stock gap down opens 354 so will they take it or avoid it that time? no not at all..they will take it because that day it already got a close at the buying level okay I understood so you see the closing candle and judge accordingly to the buying and selling totally so let me continue maybe I will try to explain it with an example only suppose 358 was our buying level at NIFTY or maybe 355 was my buying level and I know it is giving me a closing at 358 So I purchased the 358 stock so you will ask if I am buying, then how will we know the quantity so for that what we do the moment we buy, for example, the moment we know our buying level 350 suppose Dhani services..what was my buying level..say 355..I actually purchased 358 the system that gave me the buy level..let's say 355 so when our system gives buy level, then it also gives stop loss level so let's say my stop loss level was 325..example
how did this stop loss occur? system calculates on the basis of certain technical parameters so basically every time you know what is your buying level and what is your selling level which is the entry and selling stop loss so this is given by the system suppose it is 3:25-3:26 and the stock is trading at 3:58 so i will know it is above my buying level, so I need to buy now the question is how much we buy? for example, what I do is If I know my buying level is 355 then the stop loss is 325, as given by the system so I know how much is my risk My risk is 30 rupees, and I will show the example and how much I can risk.. see everyone has their own risk appetite. My risk appetite is not more than 1% of my total capital If you see my trade log, then in january my starting capital of 1.9 crore so if you see all my trades, then my position sizing is based on my starting capital so if I know my starting capital is 1.9 crore then I know how much to risk so maximum I can lose is 1.9 lac
so basically, 1.90 lac is my risk appetite and my per share risk is 30 rupees so when I divide them, I will know that 6333 is the quantity that I can buy Now you will ask that the quantity is so less The logic behind this is that maybe the stop loss was less than 325 when I was buying It maybe 290 or 295 for example when the prices are going in your favor, you start trailing your stop loss upwards so what would have happen is.. By the time I actually exit, my stop loss climbed from 290 to 320 maybe that's why you can see my quantity is less, which caused the stop loss to be 290 so I will change this here suppose my stop loss was 290, so my risk was for example 355-2 but your entry price was upwards so how was your trailing stop loss 320? wait let me show you suppose this is the first day, entry day this is my entry and this is my trading stop loss. suppose I entered at 358, and my trading stop loss was 290..example
if you see then it increased from 358 suppose it goes 370, the next day, then my trading stop loss would have come up from 290 to 295 Then this went 390 It would have gone to 310 Then it went 310 then it went 320 so I understood your model..when the market goes in your favor you start increasing the stop loss yes absolutely! Stop-loss has to go up and the stop loss will be given by the system there are no emotions here by the time the price went up from 358-380-410..my stop loss also started increasing from 290 Then the price came down this is my original stop loss derived from my buying level...quantity so our quantity also got determined now you don't have to do anything, you purchased the quantity, entry price done, and you know which share to get when the share price will keep rising, then we will trade according to our system so you are saying the entry and exit price is made by you according to the system obviously everyone has to put effort to make their own system Totally!! Like I said earlier, these are the systems of my mentor we run these systems in software given by them we use these systems The point is that I have decided to stick with those systems but then again..there are 100s and 1000s of ways people can trade the concept I am trying to explain is something that every trader should know any system you take you have to know what you are going to buy buy at what level and how much and when you have to leave you have to know all this before taking the trade many times I get DMs that sir I sold this option and I got this stock and I am at a loss of 2500..what do I do now so when you were buying and selling them..did you know when do you have to leave?
no, they don't know that that is what I mean..that we need to have a trading plan so in our case, we know when do we have to buy and when do we have to leave if we take the example of Hindustan Copper this is the same funda I told you...I bought this in 64 and the original stop loss was maybe 55 now 65 was the stop loss and the share price increased till 160 so my stop loss increased to 133-130 so now even if my trading stop-loss is hit..tomorrow, the day after, or whenever I will still get out with a 15 lac profit you will ask what is there to learn you have to understand that whenever anything goes against you, you have to mercilessly cut your position for example I know that my money is not going in my favor, it is going against I have to get out if my system is saying that it will close below 320 then it means that your stop loss has gone hit you have to enter it is just 38 rupees loss..we can wait and see if it goes up. This should not be done we don't get into the business of guessing the point is cut your losses, the moment you enter loss you cut it suppose it is a sale and my trading stop loss..thankfully I had to exit in 53000 profit, which is okay here infoedge, naukri, I entered at 5418 my training stop loss was at 314 and 30, I again suffered a loss but if you notice, my loss is not more than 1% of my capital My 1% capital is 1.9 lac, here I have lost 1.33 and then 1.50
you square this up or you wait for the EOD to close because these are EOD creds our system is EOD so we close on the basis of EOD so you also carry the risk of next day gap up and gap down No, I keep a watch and if it is going below then I cut it that day itself To cut the stop loss you use the fixed position right? you will also cut it on the intraday and not wait for the closing no not at all..for example let's take Dhani as an example suppose my trading stop loss is at 325 this is just a level it is not necessary that it will close at the same..obviously not so when I checked that day..the stop was already going at 320 so already the stop loss is below the level so you will cut it yes..but it doesn't mean that when it opens in the morning at 310
So I will not cut it because many times we ignore the intraday, we check where is the stock closing so if 325 is my level and it is going in 310, many times it is also seen that... stock opens very low but it closes in 330 Yaaa so I only look at the closing price at the end of the day around 3:25-3:26 If it is closing below the level then I will cut it..simple Got it so the point I am making is very important and it is coming on one of our pages if the traders want a holy grail..there is only one I can tell you let your winners run..don't cut what is giving you profit so what would the other person do in place of me let's do one thing..let's cut both of them..at least we will get some money ya most of the people do that only absolutely and that is exactly the wrong way what we should do is..we should remove the loss making
I even tweeted that if you are running a big business..you yourself are running..I know so you have 100 employees under you..so if.. you have an employee who is best performing and the other is the worst-performing..
so what will you do? I think as a natural businessman, you will fire the worst employee and give a bonus to the best employee so that is how you will ensure that all your worst employees are weeded out from your company and the people who are working well..you will try to retain them by giving incentives only someone working in an MNC can give this ideology you gave such a sweet analogy I understand that my trading positions are like my employees the employee who is not performing..I fire him immediately I immediately fire him, so he doesn't cause me loss like these blue ones who are my best working employees..I will never trouble them I will let them do the good work The stock that is giving me 50k-1 lac..why do I trouble them
the point is that is how you make money I have earned 34.59 lac so what you have earned is roughly from the 3 stocks Others are just here and there but that is okay if the three stocks are earning This is brilliant the problem as traders is that we don't let the position run for long I always say that your one winning position will pay for your 10 losing positions That's true the point I am making is..I am practically explaining that just a disclaimer that people will think that it is an excel sheet..which is a justified question Vivek ji if you want or if you want to nominate someone else anyone in our Twitter community who you like or someone you think will openly criticize me you can name anyone and I am ready to give him the contract of my trades unfortunately I am not able to disclose my contract deal because I can't disclose my name and it will have my real name but rest assured I can only request people to trust me that nothing mentioned here is wrong and someone who creates data will know that you need a lot of creativity to create fake data I have not created anything artificial if I get ever get a chance I will check it on my own..but I believe you I am a very optimistic person..so I always believe people
the process and keypoints you have given is a learning for me I will request my viewers to not form a judgement after seeing the P&L If they are trying to teach you something then learn it and he is teaching you for free..and it has important facts. So no use criticizing learning will only benefit you for 2 minutes forget that it is my P&L as you rightly said, every new trader has to learn some concepts it has to drill into his mind if you ever want to be successful as a trader then you should never cut your winning position immediately cut your losing position so that is your first learning I would say because 2-3 of your winning trades will 90% of your profit that is one very important point that I want to make at this point, I will just go back to my PPT..as I said I will keep doing that we will give the theory also and the practical also But Gordon I also need to keep a minimum length of the video because I need to ask you a critical question as I also made a comment earlier part time derivative trading is difficult..I myself promote cash market that it should be done part time. but how is derivative trading being done part time..give an answer to that towards the end I'll take your point like in the cash market...we also have a strategy in NIFTY
so that system tells us what quantity should we buy according to your capital on the basis of backtesting we have decided for example.. suppose you have 5 lac capital then you will only trade from 1 lot if you have 10 lac then you can do it from 2 lots as your capital increases, as in my case and I am practically telling you what I did I started with the capital of 1.9 lac, so I started with a lot of 2700 Around 36 lacs according to my parameters, if I have a capital of 1.9 crore then I can start with 36 lots you also have position in cash market, so the capital you will allocate here will it be separately or cumulative? no no in fact let me brief very good question..I also made a page on it
what I am doing is that my underline capital is all invested in stocks so now..when I invested 1.9 crore capital..the green in 1.9 crores Now what I did is when I invested this 1.9 crore. The haircut I got could have given me collateral of 1-1.5 crore so the cash you give the broker for collaterals yes we give it to the broker..and with the same money we trade in NIFTY future
okay I understood I'll come to excel in a bit but in the same point you are using the same capital twice I generally use 1/5th of my capital..I'll give an example suppose my philosophy is that for 5 lac of capital..I will use 1 lot of future so basically what will happen is that I call it ground floor and first floor so ground floor has cash of 5 lac, 5 lac of stock so now I will keep this stock as a collateral then I get a margin of 4 lac with 5 lac margin..I do 1 lac on future trade
is approx 1.5 or 1.6 lac so 4 lac of margin collateral is good for trading 1 lac in future so now when you use 1 lac for future trade..nifty value is 15k..so 15 into 56 which is 1 share you are actually getting an exposure worth 11.25 Now think of it like this if this is your 5 lac then you are using 1.6 lac margin but the exposure you are getting is almost 11.25 now what happens is this is an important point and might be helpful for the viewers to understand that when there is a bull market so my underline stocks also perform well and also my NIFTY in fact NIFTY has a double exposure for NIFTY I have an exposure of 11 lacs so in the bear market when all my stocks are going down obviously NIFTY future I can go short to a great extent, I can compensate for the loss in my underline equity so this is how I do but coming back to my excel what do we do in a NIFTY future vivek ji..that is told by our system
that exactly in which level you have to buy and what will be the stop loss so what I was saying that part-time traders should focus on the long term time frame we don't have the capacity to check the final indicator all the trade is based on daily candlestick the point is that someone like me who is working full time, I have the luxury to put my stoploss in 9:15 am for example, my trade is working since 3rd march so my trade is working since 3rd march..so in 15, 062 I took the entry so you know the chaos NIFTY has made since 3rd march so what we do is that our stop loss has certain parameters our parameters derive our stop loss it could be..it could be volatility based parameter or few days range I don't want to get into those details but broadly the stop-loss that is derived suggests that I should not be thrown out of the market in the daily whiplash so the stop loss is decided as such that if it goes up and down during the day in the last 10 days so my stop loss should not be hit so thankfully our stop loss has not shifted because we are in trade since 3rd march my trade is still there in 15051 so we only put one-stop loss in the morning the stop loss is determined and then we use it we started the trade since 22 january so how many trades I have done? In total 8 trades..2 has already expired
because Jan to Feb rollover and Feb-march rollover..so if you remove that then only trades so my point is that in 1 1/2 months it has taken 6 trades in this system basically, one trade goes for 6-7 days on an average when you focus on a positional system then there are many advantages firstly you don't need to see it for the whole day and the stop loss is there so if you are doing anything the whole day you do not need to worry because the stop loss is kept there if our stop loss hits so it hits it doesn't come back to a lower point even if our stop loss is far it doesn't matter if you are busy in a meeting you can also update the stop loss the next day so the point is that the more you lower the frequency of your trading..the more you will be successful in your part tie trading. Correct? Absolutely! not only that...the lower the frequency..the higher the time frame you have to go towards
you will be able to ignore the volatility and unnecessary noise, and you will be able to focus on your job just how did this is a trade..in one trade I will give you a specific example this was the budget day..1st february going into the budget I was shot my system is SAR stop and reverse we are short or we are long..we are always in the market my stop loss triggered in 14084..if you see the trade then I needed to reverse the position in 21st january so the point I am making is that in general in nifty future..50 points and we are told to leave
only few stay till 300-400 points I am not saying every trader is like this if the market is in the mood to give you money, so why will you tell the goddess lakshmi to not come home so when the market is giving you then you have to take it with both hands. when you come in the morning..just put stop loss in your system and then it's over I understood so my closing statement will be that if you are a part time trader, you should make your own strategy once you make a trading plan, do a back test and follow the principles of back test that's it..discretionary you won't be able to do because you are a part time trader so focus on system's trading..but it doesn't mean that it only has one system there are better systems in the market follow any system that will suit your personality and it won't be difficult for you to follow. and follow it with discipline..you will for sure make money
I think this is a clear message from you and it had a clear communication they should understand that Gordon is able to make money through part time trading if by investing 1.9 lacs he can earn 75 lacs in 1.5 months I have not verified the data but we can believe that he is doing it. If he can do it then it is possible if you follow the discipline and structure then even you can be s successful part-time trader so don't look at the screen all the time, and don't have the urge to do trading all the time so your discipline will definitely give you money in the market It was fun to talk to you, and I wish you are more successful in part-time trading And it was so good to talk to you personally because we are in the same profession of CA and CS and be active in your twitter so that everyone can follow you and make money in part time trading thank you so much for recording with us..hope to be in touch with you in future thank you to all my viewers, watch this video and also share it with your friends who are into part time trading because spreading wisdom will add more karma in your lives and also mine and gordon's life and all of us will be able to reach the path of successful money making bye bye friends..will record more face 2 face videos for you guys